Foliated Transportation Networks

Paper in proceeding, 2006

One of the major deficiencies with current distribution systems is the low resource utilization and filling rate of the trucks within the system. It is also a fact that the customers demand faster and more accurate transport services to a low price. The result of this equation is that transport and logistics companies have to increase their fleet of trucks to meet the demands from the market. They also have to lower the filling rate in order to fulfill the demands from the customers. Thus, the two parameters cause both financial and environmental problems as each additional truck within a transportation network add costs for the carrier as well as negative environmental effects, pollution, traffic congestion, etc. A way to deal with this problem refers to the design of the distribution system itself. Traditionally, there are two general ways to design a transportation network, either direct transport between the shipper and the receiver or by using a hub-and-spoke design. This paper argues for a combination of the two. Using available data on the goods and information on the carriers, it will be possible to select dynamically in which of the two distribution systems the goods is to be sent. An important condition for this is that there is sufficient information on all goods entering the system and that full traceability of goods is provided. The major benefits derived using foliated transportation networks are among others: better use of resources, more timely deliveries and all-in-one drop-offs at the receiver. Due to the demands and characteristics of the information system other effects also includes better information on the goods while being transported, deviation management and full traceability of the goods.